Inflation data sinks Bitcoin, making Trump’s massive rate cuts less likely
04 Sept 2025 · 17:10 UTC · Crypto.News RSS Feed · Original source
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Summary
Latest inflation data suggest that the Fed will likely remain conservative in its rate cuts, far short of Trump’s preferred 1% level. Latest inflation data hurt the chances that the Fed might cut rates more than expected.
Why it matters
The article discusses how inflation data is affecting expectations for Federal Reserve rate cuts, which in turn impacts investor sentiment in the crypto market. When rate cuts are less likely, the flow of capital into risk assets like cryptocurrencies may diminish as investors focus on more stable returns. This could bring a bearish trend for Bitcoin and altcoins, as market participants may withdraw from crypto to seek safer investments amidst a less favorable economic outlook.
Expected impact
The recent inflation data is likely to lead to a bearish sentiment in the cryptocurrency market, particularly affecting Bitcoin. The indication that the Federal Reserve may not cut rates aggressively will dampen investor appetite for riskier assets, including cryptocurrencies, leading to heightened volatility.